Chandigarh: The Punjab government on Thursday approved the enactment of 'New and Renewable Sources of energy (NRSE) Policy- 2012', to develop and promote new and renewable sources of energy.

A decision to this effect was taken by the state Cabinet in its meeting held in Chandigarh under the Chairmanship of Chief Minister Parkash Singh Badal, an official spokesman said.

He said the policy is aimed at maximising and improving the share of new and renewable sources of energy to 10 percent of the total installed power capacity of the state by the year 2020 besides promoting renewable energy initiatives for meeting energy/lighting needs.

The policy would also focus on creating conducive conditions to woo private sector investments in NRSE projects along with broader participation by public by giving a slew of incentives in terms of 100 percent electricity duty, exemption from VAT and Entry Tax on the equipment and machinery for the setting up of NRSE power plants, he said.

It would also focus on exemption of stamp duty and registration fee, exemption of Change of Land Use (CLU) fee, External Development Charges (EDC) or other charges, etc, the spokesman added.

The entrepreneurs who are keen on setting up NRSE projects would be provided with the facility of single window through the Punjab Energy Development Agency (PEDA)- the nodal agency for implementation of such projects, to ensure requisite clearances expeditiously. The policy would focus to generate nearly 400 MW Power through non-conventional and renewable sources of energy in the state by year 2017.

The new policy would also be instrumental in bridging the gap between the demand and supply of power besides ensuring quality power to the consumers at affordable rates, he said, adding that the thrust area of NRSE would include setting upof small and mini/micro hydro plants, biomass.